The latest auction is the smallest in Q3 2026 as N2.94tn in OMO maturities is set to boost financial system liquidity…..
The Central Bank of Nigeria (CBN), acting on behalf of the Debt Management Office (DMO), is set to auction N500 billion worth of Nigerian Treasury Bills (NTBs) across three maturities as investors continue to watch developments in interest rates and system liquidity.
The auction, scheduled for Wednesday, September 9, 2026, will be conducted through a Dutch auction, according to an offer notice issued by the apex bank and obtained by Nairametrics on Tuesday.
The bills comprise N100 billion of 91-day instruments, another N100 billion of 182-day bills and N300 billion of 364-day bills.
Money Market Dealers are required to submit their bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday.
Successful bidders are expected to receive allotment letters on Thursday, September 10, while payment for allotted bills must be made to the CBN by 11:00 a.m. that day.
Each bid must be submitted in multiples of N1,000, with a minimum bid of N50,001,000. Dealers may also submit multiple bids either for their own accounts or on behalf of non-Money Market Dealers and members of the public.
The CBN said the auction result is expected to be released on Wednesday, while retaining the discretion to reject bids or adjust the amount offered depending on prevailing market conditions.
Offer Falls Below Previous Q3 Auctions
The N500 billion offer represents a notable reduction from the N700 billion auctions that characterised several of the larger Treasury Bills sessions during the third quarter.
It is also the smallest single offer under the Q3 2026 NTB issuance programme, which targets total gross issuance of N5.8 trillion between July and September.
Under the programme, N900 billion is allocated to 91-day bills, N900 billion to 182-day bills and N4 trillion to 364-day instruments.
The one-year bills account for roughly 69% of the planned issuance, highlighting the DMO and CBN’s preference for longer-tenor instruments during the quarter.
Treasury Bills worth N2.644 trillion are expected to mature within the period, leaving an estimated N3.16 trillion in net new borrowing after maturities are repaid.
The original auction calendar featured N700 billion offers on July 8, July 29, August 5, August 12, August 26 and September 2.
Lower Rates Put Investors On Watch
The latest auction comes shortly after the CBN lowered the stop rate on the 364-day Treasury Bill to 16.84% at its September 2 auction, down from 17.15% previously.
Demand for the one-year instrument remained strong, however, with subscriptions reaching N3.24 trillion against the N700 billion offered.
The move represented the second consecutive reduction in the long-term Treasury Bill rate. The 364-day stop rate had previously declined by 44 basis points at the August 26 auction, taking the total reduction across the two sessions to 75 basis points.
The smaller offer also comes as substantial liquidity is expected to enter the financial system through maturing Open Market Operations (OMO) instruments.
An estimated N2.94 trillion in OMO maturities is due this week, representing a 30.67% increase from the N2.25 trillion recorded the previous week.
The inflow accounts for about 97.5% of the projected N3.02 trillion in total liquidity entering the financial system during the week.
September Auction In Focus
The CBN is scheduled to offer N1.7 trillion in Treasury Bills during September, with the latest N500 billion sale coming as the second of the three final auctions under the Q3 programme.
With Treasury Bill yields already declining at the longer end and expectations building around a possible interest-rate cut at the September Monetary Policy Committee meeting, market participants are likely to scrutinise Wednesday’s auction closely.
Beyond the level of subscription, the stop rates emerging from the auction could provide fresh clues about investor appetite for government securities and the direction of monetary policy in the weeks ahead.
